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G & L Beijer AB Three-Month Report January – March 2011

- Net sales increased by 12 per cent to SEK 1,268.5M (1,129.9).

- Operating profit rose by 79 per cent to SEK 72.3M (40.5).

- The divestment of shares in Beijer Alma generated a capital gain of SEK 51.7M.

- Profit after tax amounted to SEK 87.8M (28.7) including the capital gain.

- Profit per share amounted to SEK 4.05 (1.36). Excluding the capital gain, profit per share was SEK 2.25 (1.36).

- The acquisition of SCM Frigo was completed during the period.

G & L Beijer is a technology-oriented trading Group which, through a combination of added-value agency products and products of the company’s own development, offers competitive solutions for its customers.

In the previous year, operations were consolidated into comprising only products within refrigeration and air conditioning. The operational activities as a whole are carried out within the Beijer Ref business area.


The G & L Beijer Group reported a strong first quarter regarding both sales and profit. Consolidated sales increased by 12 per cent to SEK 1,268.5M (1,129.9) for the quarter. Acquisitions contributed positively to sales whilst the stronger Swedish currency had a negative effect. When adjusted for currencies, sales increased by 22 per cent during the period. Excluding acquisitions and currency effects, sales rose by 13 per cent. At the end of the first quarter of 2010, the Beijer Tech business area was divested, which means that Beijer Tech’s sales and results are not included in the comparative figures for 2010. 

The organic growth is extensive and comprises virtually all markets in which G & L Beijer operates. France, which is G & L Beijer’s largest individual market, developed especially strongly. It meant that Southern Europe reported organic growth of approxi­mately 15 per cent. The Nordic countries and United Kingdom grew organically by 10 per cent whilst Western Europe and South Africa grew by 8 per cent each. Eastern Europe reported organic growth of nearly 80 per cent, albeit from low levels. 

The most recent acquisitions, Carrier’s refrigeration wholesale operation in Thailand and the Italian SCM Frigo group, enjoyed organic growth of 30 per cent and 25 per cent respectively during the quarter. The integration process is proceeding according to plan. 


Consolidated operating profit rose by 79 per cent to SEK 72.3M (40.5). The result improvement is explained by increased sales volumes and continued strict control of expenses.

During the first quarter of 2011, the shares received as part payment for Beijer Tech were divested. The sales proceeds amounted to SEK 365M. The capital gain was SEK 51.7M. 

The Group’s financial income/expense amounted to SEK 50.0M (0.1). Financial income/expense includes the capital gain from the divestment of the shares in Beijer Alma and a share in profits of associated companies of SEK 1.5M (2.0). Profit before taxes amounted to SEK 122.3M (40.6). Profit after tax amounted to SEK 87.8M (28.7). Profit per share amounted to SEK 4.05 (1.36). Excluding the capital gain, profit per share was SEK 2.25 (1.36).

Other financial information

Consolidated capital expenditure including acquisitions amounted to SEK 88.4M (5.0). Liquid funds, including unutilised bank overdraft facilities, were SEK 717.0M (498.3). Shareholders’ equity amounted to SEK 2,322.2M (2,279.3). Net indebtedness amounted to SEK 143.6M (376.1). The equity ratio was 59.8 per cent (57.8). The average number of employees during the period was 1,823 (1,658).

Significant events

During the quarter, G & L Beijer completed its acqui­sition of the Italian SCM Frigo group. SCM Frigo designs, develops and builds chillers. The company re­­ports annual sales of approximately SEK 220M and has 70 employees. Initially, G & L Beijer acquired 51 per cent of the shares in SCM Frigo with an option to acquire the remaining 49 per cent. SCM Frigo is included in G & L Beijer’s accounts from 1 January 2011.

During the quarter, G & L Beijer divested its entire holding of 2.7 million shares in Beijer Alma, equivalent to 9.0 per cent of capital and 4.5 per cent of votes. The divestment generated sales proceeds of approximately SEK 365M and G & L Beijer made a capital gain of SEK 51.7M before tax and SEK 38.1M after tax. The shares in Beijer Alma were received as part payment on the sale of Beijer Tech during the spring of 2010. The divestment of the shares was another step forward in creating increased scope to take action for the continued expansion within the strongly growing refrige­ration wholesale operation. 

Risk assessment

The operations of the G & L Beijer Group are affected by a number of external factors, the effects of which on the Group’s operating profit can be controlled to a varying degree. The Group’s operations are dependent on the general economic trend, especially in Europe, which controls the demand for G & L Beijer’s products and services. Acquisitions are normally linked with risks, for example staff defection. Other operating risks such as agency and supplier agreements, product responsibility and delivery undertaking, technical development, warranties, dependence on individuals, etc, are continually being analysed and, when necessary, action is taken to reduce the Group’s risk exposure. In its operations, G & L Beijer is exposed to financial risks such as currency risk, interest risk and liquidity risk. The parent company’s risk picture is the same as that of the Group.

Financial information

- The Six-Month Report will be published on 18 July 2011.

- The Nine-Month Report will be published on 21 October 2011.

- The Year-End Report for 2011 will be published in February 2012.

- The Annual Report for 2011 will be published in April 2012.

Malmö, 4 May 2011

G & L Beijer AB (publ)

Joen Magnusson, Managing Director

For further information, please contact:

Joen Magnusson, CEO 
switchboard +46 40-35 89 00, mobile +46 709-26 50 91

Jonas Lindqvist, CFO
switchboard 040-35 89 00, mobile +46 705-90 89 04

This interim report has not been the subject of an examination by the company’s auditors. 

Accounting principles

This interim report has been prepared in accordance with IAS 34, the Annual Accounts Act and RFR 2.

G & L Beijer AB continues to apply the same reporting principles and valuation methods as those described in the latest Annual Report.